Sonoco Products (SON) Receives a Hold from KeyBanc


KeyBanc analyst Adam Josephson maintained a Hold rating on Sonoco Products (SON) today. The company’s shares opened today at $61.87, close to its 52-week high of $62.70.

Josephson observed:

“We are modestly increasing our 2019 estimates for Sonoco Products (SON) to reflect plummeting U.S. old corrugated container (OCC) prices; we’re now at $3.50 of adj. EPS, slightly below guidance of $3.47-$3.57, but less below than we were before (at $3.47). SON should have a healthy benefit from falling OCC costs particularly in 2Q given that OCC prices fell significantly at the start of the quarter (its contracts reset at the end of each quarter). SON will also have a resin benefit in 1Q, though that was already embedded in guidance. More below. OCC/resin costs will benefit a number of our covered companies in the quarter, notably Berry Global (BERY), Sealed Air (SEE), AptarGroup (ATR), and Greif (GEF). And we expect beverage can volumes in 1Q to be positive.”

According to TipRanks.com, Josephson is a 4-star analyst with an average return of 8.1% and a 65.8% success rate. Josephson covers the Consumer Goods sector, focusing on stocks such as International Paper Co, Avery Dennison Corp, and Graphic Packaging.

The word on The Street in general, suggests a Hold analyst consensus rating for Sonoco Products with a $60.67 average price target.

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Sonoco Products’ market cap is currently $6.18B and has a P/E ratio of 19.97. The company has a Price to Book ratio of 3.51.

Based on the recent corporate insider activity of 70 insiders, corporate insider sentiment is negative on the stock.

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Sonoco Products Co. engages in the manufacture of industrial and consumer packaging products and provides packaging services. It operates through the following segments: Consumer Packaging, Paper and Industrial Converted Products, Display and Packaging, and Protective Solutions.

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